SmartHCM

revenue per FTE

What is revenue per FTE?

Revenue per Full-Time Equivalent (FTE) is an HR metric that measures the revenue a company generates in relation to its number of full-time equivalent employees. It provides insights into the efficiency and productivity of the workforce by indicating how well a company utilizes its human resources to generate income.

Revenue per FTE is similar to the revenue per employee metric. However, while revenue per FTE adjusts for part-time and contract workers by converting their hours into full-time equivalents, revenue per employee simply divides total revenue by the number of employees, regardless of their employment status or hours worked.